But the fashion industry is trickier.

Counterfeiting and fake products manufacturing are higher in the fashion industry given the availability of knock-offs of big brands at cheaper prices. As a result, apparel gets even more challenging to authenticate thanks to the increasing sophistication of manufacturing products that can pass off as originals. There are many people donning fake LVs (Louis Vuitton) and MKs (Michael Kors) all around the world. Some customers even get duped and end up purchasing fake products for very real prices. Moreover, the rise of e-commerce websites has multiplied the scale of the problem.

As per the OECD, 2.5 percent of all imports account for counterfeited products, out of which, the US, Italian and French brands are hit the worst. Worth nearly half a trillion dollars per year, profits recovered from the counterfeiting of goods are further used to organize other crimes according to the report by OECD and the EU’s Intellectual Property Office.

With efforts taken by industry leaders to trademark products, many are now integrating technology to further help customers and retailers authenticate products.

Chanel and LV Authentication Labels

The rise in fake products and counterfeiting has provoked big brands to fight back. Chanel places hologram stickers with unique serial numbers in the lining of its handbags while Louis Vuitton has ‘date codes’ to validate authentic LV products.

Succumbing to authentication methods pertaining to the 70’s and 80’s may not be feasible in a world where technology allows sophisticated counterfeiting and manufacture of fake products.

What is required is an IoT approach towards authenticating these merchandising products.

Toronto based Authentic or Not believes every product needs an ID. By embedding their microchips in apparel and other merchandising brands, Authentic or Not claims to bridge the gap between technology and fashion. Their microchips are designed specifically to withstand washing and dry-cleaning conditions, integrating fashion and IoT. And hovering a smartphone in front of microchips-embedded clothes can verify their authenticity.

This is only one of the use-cases for incorporating IoT into fashion. What is interesting to note here, is that products do not necessarily need a ‘microchip’ to participate in the Internet of Things. They can do so without one.

When we talked about ‘Everyday Shirts on the Internet’, we explained the relevance of ‘pseudo-connected’ devices and things that can also be a part of this trend. By allocating a unique identifier to products that cannot directly connect to the internet, they become eligible to participate in the Internet of Products.

QR codes, RFIDs, and other unique product identifiers to build a brand’s product directory such as barcodes or other two-dimensional code labels can be used. These technologies are also not very expensive to deploy on all products, whereas a microchip on every product can be more feasible for higher value luxury fashion products.

Scannable and readable physical product markers can potentially IoT enable clothing and other merchandising like handbags, sunglasses, watches, shoes etc. Maintaining a digital record of fashion products allows customers and retailers to quickly run a check on the internet against these authentication labels.

These physical markers can be checked against the brands’ product data directory or centralized product IoT inventory. Brands can utilize and leverage this user-product data to enable other features like warranty management as well.

As a result, it makes it tougher for counterfeits to replicate and sell fake products.

IoT Platformshave the potential to drastically intervene and transform the billion-dollar counterfeit industry. With lack of Intellectual property rights to safeguard products, high-end fashion and merchandising brands need to deploy IoT technologies internally. Brands can implement similar technologies to fight back counterfeiting and fake products by building ‘smart products‘ or by simply connecting them to the internet.

But the fashion industry is trickier.

Counterfeiting and fake products manufacturing are higher in the fashion industry given the availability of knock-offs of big brands at cheaper prices. As a result, apparel gets even more challenging to authenticate thanks to the increasing sophistication of manufacturing products that can pass off as originals. There are many people donning fake LVs (Louis Vuitton) and MKs (Michael Kors) all around the world. Some customers even get duped and end up purchasing fake products for very real prices. Moreover, the rise of e-commerce websites has multiplied the scale of the problem.

As per the OECD, 2.5 percent of all imports account for counterfeited products, out of which, the US, Italian and French brands are hit the worst. Worth nearly half a trillion dollars per year, profits recovered from the counterfeiting of goods are further used to organize other crimes according to the report by OECD and the EU’s Intellectual Property Office.

With efforts taken by industry leaders to trademark products, many are now integrating technology to further help customers and retailers authenticate products.

Chanel and LV Authentication Labels

The rise in fake products and counterfeiting has provoked big brands to fight back. Chanel places hologram stickers with unique serial numbers in the lining of its handbags while Louis Vuitton has ‘date codes’ to validate authentic LV products.

Succumbing to authentication methods pertaining to the 70’s and 80’s may not be feasible in a world where technology allows sophisticated counterfeiting and manufacture of fake products.

What is required is an IoT approach towards authenticating these merchandising products.

Toronto based Authentic or Not believes every product needs an ID. By embedding their microchips in apparel and other merchandising brands, Authentic or Not claims to bridge the gap between technology and fashion. Their microchips are designed specifically to withstand washing and dry-cleaning conditions, integrating fashion and IoT. And hovering a smartphone in front of microchips-embedded clothes can verify their authenticity.

This is only one of the use-cases for incorporating IoT into fashion. What is interesting to note here, is that products do not necessarily need a ‘microchip’ to participate in the Internet of Things. They can do so without one.

When we talked about ‘Everyday Shirts on the Internet’, we explained the relevance of ‘pseudo-connected’ devices and things that can also be a part of this trend. By allocating a unique identifier to products that cannot directly connect to the internet, they become eligible to participate in the Internet of Products.

QR codes, RFIDs, and other unique product identifiers to build a brand’s product directory such as barcodes or other two-dimensional code labels can be used. These technologies are also not very expensive to deploy on all products, whereas a microchip on every product can be more feasible for higher value luxury fashion products.

Scannable and readable physical product markers can potentially IoT enable clothing and other merchandising like handbags, sunglasses, watches, shoes etc. Maintaining a digital record of fashion products allows customers and retailers to quickly run a check on the internet against these authentication labels.

These physical markers can be checked against the brands’ product data directory or centralized product IoT inventory. Brands can utilize and leverage this user-product data to enable other features like warranty management as well.

As a result, it makes it tougher for counterfeits to replicate and sell fake products.

IoT Platformshave the potential to drastically intervene and transform the billion-dollar counterfeit industry. With lack of Intellectual property rights to safeguard products, high-end fashion and merchandising brands need to deploy IoT technologies internally. Brands can implement similar technologies to fight back counterfeiting and fake products by building ‘smart products‘ or by simply connecting them to the internet.

The internet of things (IoT) is transforming business across every industry, from healthcare to energy to retail, and the opportunities seem endless. In fact, by the year 2020, it’s estimated that manufacturers will invest $70 billion on IoT solutions, more than double their spending in 2015.

Here at Microsoft, we’re focused on helping our partners and customers in all industries seize IoT opportunities. That is why we’re hosting a new IoT in Action webinar series. Starting in January, we’ll tackle IoT topics from a different industry perspective each month. Our first delivery is all about IoT-enabled predictive maintenance for equipment manufacturers and how artificial intelligence (AI) technology can help you prevent equipment failures, boost product quality, and ultimately, drive profit. Attend the webinar on January 11, 2018 to learn more.

Benefits of IoT-predictive maintenance

Manufacturers that implement IoT and predictive maintenance garner a number of benefits, depending upon need and application. Benefits may include:

Examples of IoT-enabled predictive maintenance

For a great example of how IoT-enabled predictive maintenance can transform business, let’s look at a steel manufacturer with multiple plants in India. Each plant has multiple arc furnaces that use water cooling panels for temperature control. However, leakages in the panels were causing safety issues as well as production losses. To resolve this issue, the manufacturer worked with Happiest Minds (a Microsoft partner) to build an Azure-based IoT solution that remotely monitors the panels, detects anomalies, and performs root-cause analysis. The implementation of predictive maintenance has prevented failures and production delays throughout the plants while helping ensure employee safety.

In another example, aircraft engine manufacturer Rolls-Royce implemented predictive maintenance on the Azure IoT platform to help their customers reduce costly flight delays caused by engine maintenance issues. Each of their 13,000 engines in operation worldwide has thousands of sensors that monitor engine components and deliver insights around fuel efficiency, engine performance, and operational efficiencies. These insights enable Rolls-Royce to anticipate maintenance needs and avoid costly, unscheduled delays.